As part of the US$ 50 billion deal with IMF, Argentina said it would target a fiscal deficit equivalent to 1.3% of GDP in 2019, down from 2.2% previously

The government and the IMF said social programs for the poor would be untouched under the deal. The vulnerable sectors are more vulnerable by the day, Hector Daer, one of the three union leaders that make up the CGT triumvirate, told reporters.

Argentina's leading labor federation announced plans to stage a one-day general strike on June 25 to protest against government economic policies, raising pressure on President Mauricio Macri as he moves to speed up spending cuts to balance the budget.

In a statement, the CGT umbrella group of labor organizations slammed the US$ 50 billion funding deal Argentina signed with the IMF last week, arguing it would dramatically aggravate an already unsupportable social situation.

Macri's announcement last month that Argentina was turning to the IMF, following a run on the peso currency, raised political risk for the government. Many Argentines blame IMF-imposed austerity policies for aggravating a 2001-2002 economic crisis that plunged millions into poverty.

As part of the US$ 50 billion funding deal, Argentina said it would target a fiscal deficit equivalent to 1.3% of GDP in 2019, down from 2.2% previously. The government aims to balance the budget by 2020 and achieve a primary surplus in 2021.

The government and the IMF said social programs for the poor would be untouched under the deal. But opposition politicians and labor groups have said it would add to the pain already felt by working class Argentines as a result of utility price hikes, inflation and rising imports that have harmed the industrial sector.

The vulnerable sectors are more vulnerable by the day, Hector Daer, one of the three union leaders that make up the CGT triumvirate, told reporters.

The CGT's strike plans are the latest sign that labor pressure is building on Macri, a market-friendly former businessman who took office in December 2015 following more than a decade of populist rule. On Monday, the powerful teamsters' union announced a truckers' strike for Thursday June 14.

Top Comments

Do you suppose that there is any connection between the argentine propensity for unproductive strikes and the associated productivity decrement, and the news today that the argie peso is at its lowest historical value against the dollar (selling today at over 27 to the dollar in local banks) ?

Jun 14th, 2018 - 03:08 pm +5

Tarquin Fin

I suppose you are right

Jun 14th, 2018 - 04:04 pm +3

Zaphod Beeblebrox

I'm surprised that the strike wasn't scheduled for a day when Argentina were playing in the World Cup.